sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Auditing »
 Supreme Court puts the spotlight on audit firms
 Auditing to be less of a burden as accountants embrace AI
 CAG's report on GST will be totally paperless
 Time Limit For Completion Of Assessment From The Date Of Special Auditor’s Report Under Income Tax Act, 1961
 Provisioning pertaining to Fraud Accounts
 Tax Audit Report (TAR) Certain exceptions and increased limits according to number of partners and considering nature of activity are desirable
 Cost Auditing Standards [ Cost Audit Documentation (102)] – Part-II
 Conference on Companies Act gets under way
 New bureau to dissolve state-run banks' power to choose auditors
 Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015
 ICAI forms 'prima facie' view on NSEL auditor

Future Group clashes with Cadbury over price discrimination
June, 03rd 2008

The country's largest retailer, Future Group, is in conflict mode with the country's largest chocolates maker, Cadbury India.

Future has boycotted the Cadbury brand across various formats within the group. The groups chief executive Kishore Biyani said Cadbury is not cutting uniform deals with all modern retailers and is giving better deals to international retailers who may have larger stakes in global markets.

The conflict has been brewing for some months now and discussions between the two finally broke down last week when the retailer sent instructions to all formats to boycott the brand. Multinational companies have to respect the contribution of Indian modern retailers to their growth and treat us as equal partners in business, Mr Biyani said.

 A Cadbury India spokesperson said, This has come as a surprise to us, we have received no official communiqu from Big Bazaar. As far as we are concerned, the negotiations are still on to finalise a mutually agreeable set of terms.

Rejecting Future Groups claim of discriminatory deals, Cadbury sources said the deals were always local and based on the retailers contribution to the local subsidiary sales. Sales from emerging markets like India are vital to global sales and therefore, it is unlikely that Cadbury will discriminate on this front, said a senior official.

Shoprite and Metro are dominant global retailers currently operating in India through cash-and-carry formats.

We have found out from our intelligence network that the company is not cutting uniform deals with all retailers and probably has better deals with international retailers where there are larger stakes involved. We find their conditional terms unacceptable, offering fill rates (stocks on shelf) of only 65%.

Such terms are unfair, especially when we have to pay the rent for the entire shelf space to the developer. Cadbury has also been insisting on payments only after an external audit which, for retailers like us who buy and sell and not really stock up, is unacceptable. These are age-old terms offered to wholesale dealers and now forced upon us by Cadbury. In fact, we have been having a dialogue with them over the past few months over this and other issues like non-payment of dues, said Sadashiv Nayak, Food Bazaar CEO.

However, sources said the growing rift between the chocolate maker and Future Group began after the latter began stocking its shelves with competing chocolates brands at higher profit margins.

In fact, in the past few days, the retailer has also entered into an exclusive tie-up with Tiffanys to launch its brands at various Big Bazaar and Food Bazaar outlets.

Increasingly, the Future Group has been demanding its pound of flesh from consumer goods makers who have also begun relaxing their stand with modern retailers. Earlier, the retailer had taken on other international companies such as Frito-Lay and GlaxoSmithKline over similar issues, although both are now back to closely working with each other.

Sales from modern retail are now roughly estimated to be around 10-15% of total FMCG sales. Retail watchers say the move was an indication of the changing equation between manufacturers and the growing clout of modern retailers like Future Group.

Over the past three years, Cadbury India has seen over 20% topline growth. Emerging markets already provide one-third of the companys confectionery revenues and represent its main source of growth. Cadbury Schweppes, which sees India as a battleground and must-win market, has substantially scaled up capital and revenue investments in the Indian subsidiary.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions